We recently discussed the concept of Share of Wallet, it is natural for any business to want to know how to increase Share of Wallet for their business. The simple answer to that question is to retain the existing customers and maintain their brand loyalty so as to generate even bigger business with them.
A Share of wallet study is generally done for your existing customers and not for new customers. This is because of the high cost of acquiring new customers and the indecision which new customers face. Hence, repeat customers are the perfect target market to do a share of wallet study. And these customers hold the key to tactics you can use to increase Share of Wallet for your brand or product in the market.
The business has to strive to become Brand #1 according to the wallet allocation rule in order to get more share of wallet from the customers. You have already won them over once; winning them over again and again cannot be difficult especially if the business practices the following means:
1) Lead the market trends
The business has to keep abreast of and be at the forefront for all the latest trends in the market for their product category. This ensures that the customers will develop a faith in the company and will look forward to the company’s range of products to experience the new trends that are in vogue.
2) Loyalty rewards
The company must reward their loyal customers for staying with the company by introducing special schemes such as loyalty discounts, special offers at concessional rates, free gifts etc. This makes the bond between the business and the customer stronger.
3) Maintain the ‘Brand Connect’
Only securing #1 Brand position in the market is not enough. It is equally important to maintain that position. And how can a business do that? By maintaining a string of special actions so as to resurface as a preferred choice in a customer’s mind whenever he recalls a brand. These special actions obviously include marketing communications informing the customers about existing products, schemes and offers, new product launches etc.
But apart from regular marketing messages, a brand has to do or communicate something special to the customers which they perceive as valuable. It may, for example, be organizing a talk show, live demonstration with a renowned celebrity, honoring special achievers, sponsoring some competitions etc. This will keep the Brand alive and fresh in the minds of customers.
4) Focus on customers giving higher business
As stated earlier, generating more business from customers who have already bought from you and are happy is far easier than approaching new, reluctant customers. Thus, the company has to concentrate a slew of marketing initiatives directed only at their present customers such as special privileges, free deliveries, price variations, new offers, free upgradation of the products to keep them happy and buying from you.
5) Upselling and cross-selling
One more important technique to increase Share of Wallet is cross-selling and up-selling. Cross-selling refers to selling products in the allied categories to the main product line. Thus, McDonald’s, a popular fast foods chain across the world, offers a private space to celebrate birthdays. They also offer decorations and services of a host for the party. The customer will have to pay additionally for this. This is cross-selling – selling a different product line apart from the principal line of products.
Upselling is offering high value- high price variant of the existing product. Thus, if McDonald’s sells its classic burger at $1.5, it may offer the customers its Big Mac at $2. This is upselling. The customers who like Classic Burger will definitely go for Big Mac spending 50 additional cents.
If you want to increase your market share and retain your customer base then it is necessary that you focus on both – New customer acquisition as well as share of wallet in the existing market. Hope these steps will help you increase Share of wallet in the market.